S.C. State Treasurer Converse Chellis III came to Orangeburg this week to tout his approach to moving the state's highest fiscal office into the 21st century.
"We have been moving pretty hard," Chellis said during an interview Monday afternoon. Chellis was in Orangeburg to speak to the Kiwanis Club earlier in the day.
Chellis, who assumed the state's highest financial office in Aug. 2007, was referring to a plan to shore up the state's pension system.
Under the plan, the Budget and Control Board will be prohibited from granting more than a 2 percent cost of living adjustment for retirees until the system is out of danger. Also, the state would avoid the ad hoc increases of the past.
Chellis said his department spearheaded a 17-member task force of various professionals who met for about six months to find a way to fix the system that has assumed a 30-year, $9 billion unfunded liability.
"We've been granting ad hoc COLAs to our retirees," Chellis said. "We believe (the new plan) meets the requirements to solve the unfunded liability. We kept an open mind."
Chellis cited that the near unanimous vote (16-0-1) of the COLA task force, which many thought would not come to an agreement, saying it showed the popularity and common sense approach of the proposal.
Chellis said his office has also worked with the State Investment Commission to invest funds in both a common and foreign stocks.
He said alternative investments will help reduce risk and maximize the rate of return, which is conservatively expected to be about 8 percent. Last year, the actual rate of return for the state's pension system was 13 percent.
Currently, the state invests about $29 billion for the pension fund.
Chellis said since he was named treasurer, he has reduced the office budget $100,000 -- or 4 percent -- without cutting staff or limiting operations.
Despite this budget decrease, Chellis said the department has been able to do more with less.
Chellis said through the Palmetto Payback program, individuals are able to reclaim previously unclaimed intangible assets such as dormant bank accounts, uncashed checks, forgotten utility deposits and uncashed dividend checks.
He said about $1.7 million is owed to residents or former residents of Orangeburg County. There are a total of 13,579 accounts.
During the past year, the office returned about $7.6 million related to Orangeburg County accounts.
Also, Chellis said the Treasure's Office has a Future Scholar 529 College Savings Plan.
The plan allows parents to save for their children's education through the opening of a Future Scholar account with as little as $250, or begin an automatic contribution plan of at least $50 per month. The program is tax deferred.
Other goals Chellis cited were:
* Safeguard state assets by keeping risk low through diversification.
* Modernization of the office, making it more efficient with less paper.
Beyond these initiatives, Chellis noted that he hopes to bring stability to the treasurer's office after much turmoil.
He noted that instability is something that South Carolina is not used to, as former Democratic Treasurer Grady Patterson served in that position for 36 years. Charleston businessman Thomas Ravenel defeated Patterson in the 2006 general election.
Ravenel later resigned after being indicted on a federal cocaine charge. The S.C. General Assembly chose Chellis to fill out the remainder of the term.
T&D Staff Writer Gene Zaleski can be reached by e-mail at gzaleski@timesanddemocrat.com or by phone at 803-533-5551.